Groundbreaking for U.S. single-family homes rose in August and permits for future construction hit a five-year high, pointing to resilience in the housing market recovery in the face of higher mortgage rates.

The Commerce Department said on Wednesday single-family starts surged 7.0 percent to an annual rate of 628,000 units last month, the highest level in six months. Single-family homes are by far the largest segment of the market.

Groundbreaking for the volatile apartments and condominiums segment, however, tumbled 11.1 percent. That curbed the rise in overall housing starts to an 891,000-unit pace, far less than the 917,000-unit rate economists had expected.